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Questions and Answers
A ______ pertains to any source of potential damage, harm or adverse health effects.
A ______ pertains to any source of potential damage, harm or adverse health effects.
hazard
The ______ is the chance or probability that a person will be harmed if exposed to a hazard.
The ______ is the chance or probability that a person will be harmed if exposed to a hazard.
risk
According to ISO 31000, risk management involves the identification, evaluation, and ______ of risks.
According to ISO 31000, risk management involves the identification, evaluation, and ______ of risks.
prioritization
Risk management aims to minimize, monitor, and control the probability of ______ events.
Risk management aims to minimize, monitor, and control the probability of ______ events.
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Sources of risks can include financial market ______, legal liabilities, and accidents.
Sources of risks can include financial market ______, legal liabilities, and accidents.
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One example of a hazard could be ______, commonly known to cause injuries in the workplace.
One example of a hazard could be ______, commonly known to cause injuries in the workplace.
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An example of a risk in the project lifecycle is the threat from ______ of the project.
An example of a risk in the project lifecycle is the threat from ______ of the project.
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According to Donald Rumsfeld, we know there are known ______, which refers to things we are aware we do not know.
According to Donald Rumsfeld, we know there are known ______, which refers to things we are aware we do not know.
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Risk management is a tool to avoid injury to guests and employees and to protect their business operations from ______ inconveniences.
Risk management is a tool to avoid injury to guests and employees and to protect their business operations from ______ inconveniences.
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The safety of guests and employees is a moral and ethical responsibility of the ______.
The safety of guests and employees is a moral and ethical responsibility of the ______.
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Credit risk is the potential that a bank borrower or counterparty will fail to meet its ______ following agreed terms.
Credit risk is the potential that a bank borrower or counterparty will fail to meet its ______ following agreed terms.
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Accidents are reactive while ______ are preventive.
Accidents are reactive while ______ are preventive.
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Accident management is necessary to reduce the costs pertinent to the accident, including damage to ______.
Accident management is necessary to reduce the costs pertinent to the accident, including damage to ______.
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Risk management aims to limit the occurrence of ______.
Risk management aims to limit the occurrence of ______.
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The effective management of credit risk is critical to the long-term success of any ______ organization.
The effective management of credit risk is critical to the long-term success of any ______ organization.
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Common injuries in the tourism and hospitality industry often arise due to inadequate ______.
Common injuries in the tourism and hospitality industry often arise due to inadequate ______.
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Risk may be defined as a potential loss or harm to persons and _____ .
Risk may be defined as a potential loss or harm to persons and _____ .
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In the context of risk management, a _____ is an event that can cause harm or loss.
In the context of risk management, a _____ is an event that can cause harm or loss.
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Legal _____ in the tourism and hospitality industry can involve financial loss and damage to property.
Legal _____ in the tourism and hospitality industry can involve financial loss and damage to property.
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Managers in tourism must deal with the threat usually embedded in a _____ .
Managers in tourism must deal with the threat usually embedded in a _____ .
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Minimizing the consequences of project failure is essential in a Public-Private _____ .
Minimizing the consequences of project failure is essential in a Public-Private _____ .
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Common injuries in the hospitality industry may lead to _____ claims from guests or workers.
Common injuries in the hospitality industry may lead to _____ claims from guests or workers.
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Differentiating between risks and _____ is critical for effective project management.
Differentiating between risks and _____ is critical for effective project management.
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The _____ oil embargo in 1973 resulted in higher oil prices and increased economic uncertainty.
The _____ oil embargo in 1973 resulted in higher oil prices and increased economic uncertainty.
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Study Notes
Overview of Risk Management in Tourism and Hospitality
- Risk management protects guests and employees, and safeguards business operations from financial and physical harm.
- Operates on two principles: ensuring guest and employee safety and protecting the business from property damage and litigation.
Credit Risk
- Credit risk is the potential that a borrower fails to meet obligations as per agreed terms.
- Effective credit risk management maximizes risk-adjusted returns while maintaining exposure within acceptable limits.
- Banks must manage credit risk across their entire portfolio and understand relationships with other risks.
Accidents vs. Risks
- Risks are proactive, while accidents are reactive; risks aim to prevent future incidents.
- Accidents can lead to emotional distress, confusion, and property damage.
- Accident management focuses on reducing costs associated with incidents, including property damage and recovery efforts.
Definitions
- Hazard: Any source of potential damage, harm, or adverse health effects (e.g., chemicals, electrical hazards).
- Risk: The probability that exposure to a hazard will result in harm or adverse health effects.
ISO 31000 and Risk Management Process
- Risk management involves identifying, evaluating, and prioritizing risks, followed by coordinated resource application to minimize unfortunate events.
- This process is systematic and requires careful study and evaluation of risks to prioritize actions effectively.
- Collaboration with key organizational personnel is essential for effective risk control.
Sources of Risks
- Financial market uncertainty
- Risks from project failures at various lifecycle phases
- Legal liabilities
- Credit risks
- Accidents
Financial Market Uncertainty
- Managers must assess uncertainties that could impact business performance.
- Distinction between "known unknowns" and "unknown unknowns" is crucial for prudent decision-making.
- Example: Oil price spikes can have varying impacts on industries, like benefitting oil producers while harming airlines.
Threats from Project Failures
- Project threats must be managed; success relies on avoiding failures or minimizing impacts.
- Public-Private Partnerships (PPP) measure success based on minimizing project failure consequences.
- Calculated risks are necessary for compelling business development.
Legal Liabilities in Tourism and Hospitality
- Risks in the tourism and hospitality sector include potential financial loss, property damage, and injury to guests or workers.
- Risk management serves as a precautionary approach to mitigate legal responsibilities associated with these risks.
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Description
Explore the essentials of risk management in the tourism and hospitality industry. This quiz covers key concepts like credit risk, the difference between accidents and risks, and the importance of safeguarding guests and employees. Test your knowledge on how effective risk management can impact business operations.
